Sustainability Report 2009 - The Co-operative

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Ecological sustainability Climate change Waste and packaging Biodiversity Persistent, bioaccumulative and toxic (PBT) chemicals The Co-operative’s approach to addressing the issue of climate change is five-fold, embracing: energy efficiency, support for renewable energy, carbon offsetting, the provision of finance, and public policy lobbying. Accounting In the interest of transparency, The Co-operative’s greenhouse gas emissions have been reported in two ways: gross emissions (that treat electricity from renewables in the same way as ‘brown’ electricity, with a conversion factor of 0.54055kg CO 2 per kWh) 8 , and net emissions (that treat electricity from renewables as zero carbon and include operational offsets). Emissions factors used to calculate greenhouse gas emissions associated with other sources, such as transport and refrigeration, have been taken from the Department for Environment, Food and Rural Affairs (Defra) 2009 guidance 9 unless otherwise stated. Performance overview Tonnes The Co-operative’s gross greenhouse gas emissions have reduced by 21% since 2006 (including former Somerfield and former Britannia) and reduced by 14% between 2008 and 2009. Net emissions have reduced by 40% since 2006 and reduced r by r 28% between 2008 and 2009. Like every other major retailer and financial services provider, The Co-operative does not currently have accurate accounting systems Decrease in place for 2008–2009: the great majority 28% of its indirect emissions. It is recognised that these are likely to be significantly larger than its direct emissions. However, an increasing number of 0 400000 500000 carbon footprinting 600000initiatives are progressing as described on pages 63–64. Food store and distribution centre refrigeration 21 (tonnes) 0 250,000 500,000 750,000 1,000,000 0 50,000 100,000 150,000 200,000 250,000 300,000 energy Tonnes consumption increased by 4% in 2009 compared with 2006 15 988,957 r 2008, but 0 has 100,000 reduced 200,000 by 2% compared 300,000 with 400,000 2006 20 500,000 . 600,000 2006 297,043 2007 16 884,289 9,394 2007 294,229 2006 120,163 r 383,780 2008 17 513,337 822,734 Energy consumption 2008 262,434 43,170 r 1,337 2009 18 588,802 2009 190,543 2007 MWh 386,604 431,111 42,940 0 r 1,289 500,000 1,000,000 1,500,000 2,000,000 Decrease 2006–2009: 40% 2008 Decrease 2006–2009: 24,717 370,391 414,620 36% 1,996,682 2006 35,791 1,434 1,151,885 820,080 Decrease 2008–2009: 27% 2009 233,822 271,04724,183 1,946,123 2007 1,105,719 816,221 23,351 1,831,964 The Co-operative Former Somerfield 2008 1,015,610 r 793,003 Former Britannia 24,190 2009 950,729 645,793 1,620,712 The Co-operative’s carbon footprint (tonnes CO 2 e) 10 Decrease 2006–2009: 47% Decrease 2008–2009: 35% The Co-operative Former Somerfield Total gross CO 2 e emissions Former Britannia Tonnes Distribution 35 (tonnes) 0 300,000 600,000 900,000 1,200,000 1,500,000 0 50,000 100,000 150,000 200,000 Total gross CO 2 emissions from energy consumption 21 2006 11 1,414,686 r 2006 153,100 r Tonnes 2007 12 1,396,926 r 2007 153,547 r 0 200,000 400,000 600,000 800,000 1,000,000 2008 13 1,290,226 r 2008 148,382 r 12,134 939,066 2009 14 1,111,918 2009 36 132,314 2006 543,152 r 383,780 1500000 2000000 Decrease 2006–2009: 21% Decrease 2008–2009: 14% 00000 800000 1000000 Energy During 2009, energy consumption across The Co-operative (including former Somerfield and former Britannia) decreased by 12% compared with 2008 and by 19% compared with 2006. Gross and net CO 2 emissions have decreased by 18% and 47% respectively. Comparison of like-for-like data, excluding former Somerfield, shows that energy consumption decreased by 6% compared with 2008 and by 17% compared with 2006. Electricity usage decreased by 3%, and gas usage decreased by 18% compared with 2008. Overall gross and net CO 2 emissions connected with energy consumption have decreased by 15% and 71%, respectively, since 2006. Former Somerfield’s energy consumption decreased by 19% compared with 2008, with electricity and gas usage both reducing by 17% and 23% respectively. This reduction was achieved, in part, due to store disposals. CFS’ overall energy consumption decreased by 5% in 2009, compared with 2008, and has dropped by 19% since 2003 19 . Former Britannia’s overall 2007 2008 2009 Decrease 525,889 2006–2009: r 14% Decrease 2008–2009: 11,598 11% 480,332 r 370,391 862,321 Total net CO 2 e emissions The Co-operative Former Somerfield Tonnes Food store and distribution centre refrigeration 21 (tonnes) Former Britannia 0 250,000 500,000 750,000 1,000,000 0 50,000 100,000 150,000 200,000 250,000 300,000 457,882 11,835 11,878 304,042 922,371 384,604 773,759 2006 15 988,957 r Decrease 2006 2006–2009: 18% 297,043 2007 16 884,289 r Decrease 2007 2008–2009: 10% 294,229 2008 17 Energy usage (gross) 19 (tonnes) 822,734 r 2008 262,434 2009 18 0 250,000 500,000 588,802 750,000 1,000,000 2009 190,543 2006 2007 2008 2009 Decrease 2006–2009: 40% Decrease 2008–2009: 28% Decrease 2006–2009: 18% Decrease 2008–2009: 10% 939,066 922,372 861,670 777,894 2006 2007 2008 2009 Business Decrease travel 2006–2009: 37 (tonnes) 36% 0 10,000 Decrease 2008–2009: 27% 17,089 15,302 20,000 25,477 26,778 30,000 Decrease 2006–2009: 40% Decrease 2008–2009: 10% 58 The Tonnes Co-operative Group Sustainability Report 2009 0 300,000 600,000 900,000 1,200,000 1,500,000 Distribution 35 (tonnes) 0 50,000 100,000 150,000 200,000
Total net CO 2 emissions from energy consumption 22 2006 2007 2008 2009 Tonnes 0 100,000 200,000 300,000 400,000 500,000 600,000 9,394 120,163 r 43,170 r 1,337 42,940 r 35,791 1,434 The Co-operative Former Britannia Energy strategy 1,289 233,822 271,047 Decrease 2006–2009: 47% Decrease 2008–2009: 35% 386,604 431,111 370,391 414,620 Former Somerfield 383,780 513,337 The Co-operative’s energy strategy focuses on The Co-operative Tonnes Food’s stores, distribution and The Co-operative’s head office 0 200,000 400,000 600,000 800,000 operations, which comprise almost 90% of its energy use 23 1,000,000 . The 12,134 939,066 energy 2006 programme is directed by 543,152 a Programme r Board chaired 383,780 by the Managing Director of The Co-operative 11,878 Estates. There 922,371 are three areas 2007 of focus: the encouragement 525,889 of r staff behavioural 384,604 change and 11,598 better housekeeping; amendments to the standard ongoing refit 2008 480,332 r 370,391 862,321 programme; and a retrofit programme designed to reduce energy 11,835 at 2009 the most energy-intensive 457,882 stores. Capital expenditure 304,042 773,759 of £4.1m was committed in 2009, with a further £9.5m approved for the period The Co-operative 2010 to 2012 inclusive. Former Somerfield Former Britannia Initiatives delivered in 2009 include: • Roll-out Decrease of retrofit 2006–2009: measures 18% to a further 736 premises (2008: Decrease 257), including 2008–2009: 395 energy 10% management systems, improved lighting systems and fridge controls. • Improvements to the refit programme, including the use of Light Emitting Diodes (LEDs) and fitting night blinds on chillers to reduce energy wasted at night. • Continued roll-out of automated gas readers: with a total of 794 premises, including the Manchester head office complex, now recording half-hourly gas usage, enabling better analysis of potential gas usage reductions to be carried out. In 2008/09, six dedicated Food regional energy managers oversaw the continued training of around 3,000 employee Energy Champions. Every Co-operative Food store has an Energy Champion, supported by one of 250 area and 25 regional Energy Champion co-ordinators. In 2010, the Energy Champion programme will be extended to acquired Somerfield stores. The Co-operative is developing new headquarter premises in Manchester. The design that was granted planning permission achieved a BREEAM ‘outstanding’ rating 24 . In 2009, as part of the initial design process, a review was undertaken to investigate the impact of projected temperature rises from climate change upon the building’s cooling systems and energy consumption. As a result, the long-term impacts of climate change were considered in the design. Performance benchmark The Co-operative ranked fourth in the Sunday Times 60 Best Green Companies list, published in May 2010, and was the highest ranking large business in the medium environmental impact category. Green electricity procurement In October 2009, The Co-operative signed a new five-year electricity contract, which included former Somerfield premises and the majority of the former Britannia estate. The new contract will provide renewable electricity to over 5,500 sites, so that virtually all (over 98%) of the electricity supplied to The Co-operative will be sourced from good-quality renewable sources – mainly wind and hydro technologies. This makes The Co-operative one of the largest purchasers of green electricity in the world. In addition, The Co-operative has negotiated equivalent green electricity contracts (286GWh) on behalf of 20 independent co-operative societies. There is a concern that the good intentions of green electricity procurers may not prompt further growth in the UK’s renewable generation capacity – some suppliers charge a premium for green electricity that they are effectively obliged to generate anyway, due to legislative requirements. With this in mind, in 2004, CFS agreed an innovative £4m eight-year green electricity purchase agreement. This long-term off-site commitment – the first of its kind – enabled green electricity generator, ecotricity, to finance the construction of six new wind turbines in Lincolnshire. The supply arrangement meets around 15% of CFS’ electricity requirement (some 9GWh each year). Performance benchmark In 2009, The Co-operative received the Renewable Energy Association’s Pioneer Award. This is given to the organisation from outside the sustainable energy sector judged to make the greatest contribution to the advancement of renewable energy. The Co-operative also received this award in 2007, making it the only business to have won the award twice 25 . The Co-operative Insurance was the first institutional property investor to transfer all contracts held for its investment property portfolio to green electricity (large-scale hydro and Climate Change levy-exempt sources) and believes it is still the only institutional property investor to have done this, sourcing some 9.2GWh in 2009 (2008: 9.4GWh). On-site renewables generation The Co-operative has made significant progress in the development of its own renewables capacity. Planning permission has been granted for a 28MW, 14-turbine wind farm on Co-operative land in Goole, Yorkshire. This will be capable of supplying enough electricity to power more than 16,000 homes annually, and completion is anticipated by 2012. A 16MW, eight-turbine wind farm has been operational since 2006 on Co-operative farming land at Coldham, Cambridgeshire. All output from this wind farm is paired with The Co-operative’s sites. Planning permission has been granted for a seven-turbine extension to Coldham wind farm, to be constructed in late 2010/early 2011. In February 2009, The Co-operative applied for planning permission for a 32MW wind farm, later revised down to 20MW, on third-party-owned land. Output from The Co-operative’s renewable energy installations in 2009 was approximately 29,800MWh (2008: 35,400MWh). Ecological sustainability Climate change Waste and packaging Biodiversity Persistent, bioaccumulative and toxic (PBT) chemicals The Co-operative Group Sustainability Report 2009 59
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Sustainability Report 2009 Focus on
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The Co-operative Group Sustainabili
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prioritising community investment a
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“There is a tide in the affairs o
Page 9 and 10: About this Report Target attainment
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Page 31 and 32: Read more in this Report • The Co
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Page 35 and 36: Beef production All own-brand fresh
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Page 73 and 74: 2007 2008 2009 140,766 r 134,798 r
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A range of drivers impact on custom
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Complaints received by other custom
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Public policy ‘influence and acti
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Trade and business association memb
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Independent assurance statement Sco
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Reporting in accordance with the GR
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Recognition Social responsibility
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